EU probe targets Internet providers

Europe's fast-growing Internet market is being investigated by Brussels competition authorities in a move that could have wide repercussions for links between telecoms companies and Internet access providers,

The European Commission has launched a probe into whether Deutsche Telekom of Germany is abusing its market dominance to give it an unfair lead against rivals. The inquiry follows a complaint from AOL Europe, a joint venture between America Online and German media group Bertelsmann.

AOL claims Deutsche is effectively cross-subsidising its own Internet business, TOnline, and uses other advantages - such as its billing reach and shops - to squeeze out competitors.

Deutsche said it charged subscribers to T-Online the same amount as it charges AOL for access to its phone network. Analysts said British Telecom was unlikely to be heavily affected by an investigation.